Ghana’s Chinese-Backed Power Plants Set a Cost-Efficiency Standard for Africa, Report Says
African nations seeking to strike better deals on Chinese-financed power projects can look to Ghana as a model, according to a report released Wednesday by the Energy for Growth Hub, a Washington-based think tank.
The study examined five solar, hydro, and gas-fired plants that Ghana built with Chinese partners between 2013 and 2020, and found they were delivered “at reasonable cost, on relatively strong timelines, and with fewer quality problems” compared with similar projects elsewhere in Sub-Saharan Africa.
China has become the continent’s largest infrastructure financier over the past two decades, pouring billions into roads, railways, and power stations. But many projects have been dogged by cost overruns, delays, and disputes over debt repayment. Ghana’s experience, the report argues, shows that host governments — which typically retain ownership of the assets and shoulder the loan liabilities — must take the driver’s seat.
“The host government must drive the terms, standards, and delivery,” the think tank wrote, urging countries to stop treating Chinese financing as a turnkey solution and instead manage the process as active clients.
The report distills four practical lessons from Ghana’s approach: establish cost benchmarks early, use competitive tendering processes, hire seasoned negotiators with technical and financial expertise, and invest in independent construction oversight. These steps, it says, helped Ghana avoid the cost blowouts and quality shortfalls that have plagued neighboring countries.
Ghana’s power sector has long struggled with generation gaps and high tariffs, but the think tank noted that its handling of Chinese-funded projects offers a rare bright spot. The findings come as many African nations renegotiate their energy debts and seek more favorable terms for new infrastructure deals.
“Too often, countries sign contracts they don’t fully understand,” the report concluded. “Ghana shows that with the right preparation and institutional muscle, you can get a good deal.”